“In a volatile economic context and with an increasingly demanding consumer, maintaining loyalty is becoming a major challenge for brands. Romanian customers are increasingly price-sensitive, which leads to increased mobility between brands and retailers, in search of the best offers.
At the same time, we are witnessing an erosion of trust in traditional brands, in favour of private labels, but also local or sustainable ones, which communicate transparently and authentically,” Feliciu Paraschiv, Owner and CEO of Paco Supermarkets told The Diplomat-Bucharest.
“Virtual assistants and chatbots contribute to a seamless customer experience, while price and brand sentiment monitoring systems provide a significant competitive advantage. In the medium to long term, we expect an ever-deeper integration of AI in retail – from autonomous stores to real-time dynamic pricing, to the reorganization of store layouts based on customer behaviour. AI is no longer a luxury, but a strategic necessity for any retailer that wants to remain relevant.”
What are the main macroeconomic or consumer confidence factors impacting FMCG and retail business in Romania in 2025?
In 2025, the FMCG and retail sector in Romania is strongly influenced by a series of relevant macroeconomic factors, which shape the dynamics of the consumer market. Inflation, although in a downward trend compared to previous years, with recent growth trends for the coming period, continues to affect the purchasing power of the population, especially in rural areas and among low-income households. At the same time, the level of wages achieved as well as the level of pensions determines a slight revival of domestic consumption, but this trend is counterbalanced by the increasingly high operational costs for retailers.
On the other hand, the high level of interest rates compared to the European market, the restrictive monetary policy of the NBR (maintained to keep inflation under control), negatively influence consumption by limiting lending. In this context, consumer confidence remains volatile, affected by external uncertainties, geopolitical instability and volatile energy and food prices. The variation in shelf prices is a relevant barometer of the political, economic and well-being situation. However, we are confident that the transition period will be finite and we will reach a reasonable level of economic stability.
How are inflation, supply chain instability, or global events affecting product availability and pricing in Romania?
Inflation, supply chain instability and global events create an uncertain climate regarding product availability and pricing. The increasing costs of raw materials and energy determine a continuous increase in prices, especially in basic categories such as processed foods, meat, dairy products and bakery products.
In addition, geopolitical conflicts, such as the war in Ukraine or tensions in the Middle East, negatively disrupt market stability and transport costs, affecting the availability of essential product categories, such as vegetable oils, cereals and agri-food products.
In this context, Romanian retailers are forced to rethink their supply strategies, increasingly relying on local and regional suppliers, in order to reduce exposure to external risks.
What challenges are brands facing when trying to maintain customer loyalty in such a dynamic retail environment?
In a volatile economic context and with an increasingly demanding consumer, maintaining loyalty is becoming a major challenge for brands. Romanian customers are increasingly price-sensitive, which leads to increased mobility between brands and retailers, in search of the best offers.
At the same time, we are witnessing an erosion of trust in traditional brands, in favour of private labels, but also local or sustainable ones, which communicate transparently and authentically. The fragmentation of sales channels, especially with the accelerated development of digital commerce, forces brands to be present in a coherent and relevant way on all platforms – physical and digital.
In the absence of effective personalization of offers, customers feel unvalued, and this can quickly lead to a decrease in loyalty. In addition, younger generations, increasingly active in consumption, expect more from brands than products – they expect values, social involvement and sustainability. Loyalty as we knew it has disappeared.
Which FMCG / retail categories are showing the strongest growth in Romania in 2025?
The year 2025 brings notable growth in certain segments of the FMCG market, reflecting changes in lifestyle and consumer priorities. Organic, local and artisanal products are making strong progress, supported by consumers’ desire to make healthier and more sustainable choices.
At the same time, retailers’ own brands are experiencing a spectacular rise, offering an increasingly appreciated balance between quality and price. Brands have had to reconsider their positions and make greater efforts to remain in the market. Personal care and wellness products are gaining ground, amid the growing concern for individual health and well-being.
Another segment with constant growth is ready-to-eat and semi-prepared foods, preferred by urban consumers who have less time to cook. The pet products market has also enjoyed rapid development in recent times, with a growing demand for both premium food and accessories.
What are the key consumer behaviour trends shaping the FMCG and retail market in Romania in 2025?
Romanian consumer behaviour in 2025 reflects a clear transition towards more informed, rational and digitally connected consumption. Purchases are increasingly planned, and purchasing decisions are influenced by criteria such as label transparency, product provenance and value for money. Impulse sales are declining; thoughtfulness has become the watchword.
Digital channels have become essential in the purchasing process – from information and comparison, to purchase and loyalty. Consumers value omnichannel experiences, in which the boundary between online and offline is increasingly blurred.
At the same time, sustainability is becoming a defining criterion, and recyclable packaging, green transport or local products are preferred over generic ones. And that’s not all, following the new PPWR regulations, stores will look different. There is also a growing need for personalization, from individualized offers to relevant communication and experiences built on each customer’s profile. People are different and they want to see it.
How is the balance shifting between traditional retail, modern trade, and e-commerce (digital transformation and omnichannel experiences) in Romania this year?
The structure of retail channels in Romania is rapidly reconfiguring in 2025. Modern trade continues to dominate in terms of volume and value of transactions, but it is in continuous adaptation, moving towards more agile formats, such as proximity stores and very small and ubiquitous formats.
Traditional trade, although declining in urban areas, remains relevant in rural areas and small communities, benefiting from investments in technology and integration into more efficient distribution networks.
However, the greatest advance is recorded by e-commerce, which has become a strategic sales channel in FMCG. Click-and-collect models, quick delivery (q-commerce) and integration into marketplaces contribute to a diversification of options for customers. Digital retailers are investing in physical presence, while traditional retailers are accelerating digitalization – which clearly shows that the future is omnichannel.
What is the impact of AI technologies in the FMCG and retail in Romania and what to expect in the future?
Artificial intelligence is starting to play a central role in streamlining and personalizing operations in Romanian retail. Through advanced forecasting algorithms, AI allows for much more precise planning of stocks, promotional campaigns and pricing strategies, reducing waste and optimizing costs. It creates content for the marketing department at an astonishing speed.
In the e-commerce area, AI powers personalized recommendation systems, significantly improving conversion rates and customer satisfaction. Also, in logistics centers and back-offices, process automation through AI brings efficiency and speed of reaction.
Virtual assistants and chatbots contribute to a seamless customer experience, while price and brand sentiment monitoring systems provide a significant competitive advantage. In the medium to long term, we expect an ever-deeper integration of AI in retail – from autonomous stores to real-time dynamic pricing, to the reorganization of store layouts based on customer behaviour. AI is no longer a luxury, but a strategic necessity for any retailer that wants to remain relevant.